Marathon increases Eagle Ford position with US$750 million acquisition
Marathon is increasing its already considerable footprint in the liquids rich sections of the Eagle Ford Shale play in South Texas. It will acquire Paloma Partners II, a partnership led by private E&P player Paloma Resources, and funded by EnCap and Macquarie. A cash consideration of US$750 million will be paid, in return for 17,000 net acres and 7,000 boe/d (70% liquids) of flowing production. Our valuation points to this being an excellent bolt-on acquisition for Marathon. We value ...